Determinants of Household Expenditures on Alcohol
Economics, Center for Agricultural and Rural Development
Journal or Book Title
The Journal of Consumer Affairs
First Page or Article ID Number
This paper examines the determinants of household alcohol expenditures by using a nonnormal and heteroscedastic double-hurdle model to accommodate zero observations in the sample. The model is a generalization of the double-hurdle model estimated in previous studies of alcohol consumption. We also examine the effects of explanatory variables by calculating and decomposing the elasticities. Findings support the use of a more generalized error distribution. Income, region, education, and household demographics are among the significant determinants of alcohol expenditures.
Yen, Steven T. and Jensen, Helen H., "Determinants of Household Expenditures on Alcohol" (1996). Economics Publications. 229.